Combining Lots to Reduce Assessment Obligation

The HOA of which I am a member was formed in 1994. At the time the association was formed, the developer submitted a hand-drawn plat that showed 29 lots. These lots were and are currently used as the basis for yearly assessments of $480 per lot for both homeowners and lot owners.

Since then, we have discovered that the plat filed and legally recorded at the courthouse actually showed 35 lots. At this time 22 of the original lots have houses or townhouses on them, and 13 lots remain vacant. There has been no new construction in the development since 2006. The owner of the 13 undeveloped lots is the original developer. Upon finding the discrepancy in the 2 plats, we have now found several instances where the developer combined two 25-foot lots into a single 50 foot lot when he submitted his hand-drawn plat for forming the association.

Our concern is that he feels he can arbitrarily continue combining unsold lots to reduce his financial obligations to our HOA. For example, adjacent to his home are 4 vacant lots owned by him. Can he legally and at any time combine any number of contiguous lots as one lot in order to reduce his assessment obligations? Can he legally combine his home (2 lots) with the 4 adjoining 25-foot lots to form one 150-foot lot? This would reduce his annual assessment by almost $2000. His nephew bought 2 adjacent lots and has stated that he is having them replatted into one 50-foot lot. We believe that since the lots (especially according to the legal filed plat) are used to calculate our yearly assessments, the former developer and current owner of these lots cannot legally combine lots without violating our HOA bylaws. However, I cannot find anyone here who can answer tell me if it is legal or not. Our current HOA will be now be using the legal plat for annual assessments, but we need to know if the former developer and owner of the vacant lots can legally continue to combine and replat lots any time he desires to reduce his assessments?

If I have not been clear, please forgive me. It is a very complicated situation and I tried to be as brief as possible. I and my fellow homeowners would greatly appreciate your assistance if possible.

Tim's advice is right on.

But I will mention what our CC&Rs basically say: Two lots (condo units) may be combined, but they still are treated as separate lots for assessment purposes. Review your docs to see if yours say something to that effect.

The process for determining assessments was set by our HOA board (5 elected members). It would be the board's responsibility to provide you with any information in regard to budgets and assessments. Because the HOA has been in existence for a given period of years, we are longer required to have the developer or his representative sit on the board. There is nothing in our current bylaws concerning combination of lots.

As I earlier stated, the developer falsely represented the number of lots in his original submission when the HOA was formed. Ours is a very small HOA with 17 voting members. Besides the developer, 5 more votes are controlled by his family members who own lots in the development. The lots in question (combined ones) are owned by the developer or his relatives. If he is allowed to continue combining lots, it will increase the other homeowners' yearly obligations.

We have already spent $3000 talking to attorneys. The problem is that if we continue and sue the HOA, we are suing ourselves. They tell us that we have grounds for a suit, but it would be very expensive. Those with whom we have consulted agree that the developer's actions are grounds for legal action, but again, costly legal action.

Could you get enough votes to change the allocation from "per lot" to "per dimension" (acre or sq.ft.)?

Our original plat called for 114 lots with each lot/home paying the same dues regardless of lot/home size. When the declarant got down to the last 4 lots, he rearranged them into 3 lots so as to be able to fit specific home size/models on them. Several owners felt he was "cheating" the HOA out of a bit less then 1% (1 of 114) of the dues. They did get a legal opinion that said the Declarant could do it.

Basically you can't use the HOA, you need a class action with a teeny class (you guys) against the developer

To reiterate what was posted earlier:

It's a complicated situation tied to very specific documents. This is why it may be best to consult with a local attorney, perhaps one versed in property or contract law.

In addition to those documents, see if you can get copies of what is actually recorded with the County. What is recorded will have more weight then what the developer or Association provided.

I would also recommend that instead of an in person meeting that you communicate by e-mail or written letters. This can keep from the cordial greetings and rehashing of previous information. Summarize your situation to just the facts. Provide the documents that area available and then ask direct questions and request a written opinion.

The questions I would ask would be:

1) Which PLAT is the official Plat that is being used by the county?
2) If the PLAT that is the considered the official PLAT is the one with the combined lots, was proper procedure followed to make that PLAT applicable to the Association for assessment purposes. If not, why not?
3) Again, if the revised PLAT is considered the official plat, what legal options do we have to nullify or return to the original PLAT and what is the realistic likelihood that those options would be successful (please answer this for each option).

Thanks so much for your help, Tim and others.

We have copies of both PLATs. The plat filed with the county shows 35 lots. The hand-drawn plat submitted by the developer when the association was formed showed 29 lots (He reduced the number by pairing 6 25-ft lots into 3 50-ft lots). The discrepancy between the officially recorded plat and his manufactured one are the basis of our complaint against him. Several of the original homeowners who signed the original documents forming the HOA no longer live in the development. Our contention is that the developer did not act in good faith when he submitted his doctored plat, and that the founders of the HOA falsely assumed it was identical to the plat officially filed with the county. The result of the developer's actions have resulted in a net loss of about $1500 per year for the HOA. He has since sold 2 lots to his nephew who is currently saying that he will combine his 2 -25-ft lots into a single 50-ft lot.

His family would still have 9 votes out of 17. Each homeowner in the development gets 1 vote. Lots are used to calculate yearly assessments but are not used to determine the number of votes.

No, no, no, no. Go check - doesn't matter how you have been calculating it. Matters only that a person with one lot gets one vote.

Either
a) Person with 50 ft lot gets two votes and pays assessments for 2 lots.
or
b) Person with 50 ft lot gets one vote and pays assessments for 1 lot.

This is not mix and match. Either choice (a) or choice (b). Period.

Just my opinion tho.